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Guru Search Results: 12 matches were found

Monday, June 04, 2001 #4454
Dear Guru, How is a national theoretical plan translated to a test market?

The Media Guru Answers(Monday, June 04, 2001 ):
There three ways, in general

  • Little U.S., where the test market runs the same schedule as the national plan
  • As it Falls, where the test market runs the schedule it would have experienced had the national plan been running, and
  • Correct increment, which is similar to "as it falls," but accounts for predicted variation in media costs and budgets between test dates and anticipated roll-out dates
  • The key difference between Little U.S. and "As-it-Falls" is in recognizing that the rating level of nationhal media varies from one market to the next. Translating network or cable TV as-it-falls is fairly simple, magazines can be trickier.,

    Also see a guide to test market posted by MediaLife Magazine

Wednesday, May 30, 2001 #4440
What steps should I take to select test markets for DRTV?

The Media Guru Answers(Wednesday, May 30, 2001 ):
DRTV should not be market sensitive, unless the product or it's prospects have geographic variance. You might as well test where budget will be lowest if the intended media vehicles are available.

But see a guide to test market selection posted by MediaLife Magazine

Tuesday, April 03, 2001 #4308
I researched your past responses regarding test markets but could not find the answer I was looking for. I know Ad Age, ANA, Media Week or the AAAA have published lists in the past of what was considered the top twenty test markets in the country. I know that true testing is dependent upon a lot of factors but would like to see list nonetheless. Can you help?

The Media Guru Answers(Tuesday, April 03, 2001 ):
The Guru might well recommend the sources you mention. See also query #4307.

Tuesday, April 03, 2001 #4307
Is there a list of top 10 marketing/advertising test markets in the US?

The Media Guru Answers(Tuesday, April 03, 2001 ):
If you mean the 10 markets most commonly used for tests, American Demographics may have written about this.

If you mean the "best" test markets, Standard Rate and Data Service (SRDS) and Nielsen have data to help you chose, but what is actually "best" is a matter of your criteria.

Tuesday, October 10, 2000 #3880
Hi Media Guru, What is the normal length of a test market campaign? More specifically, if we're testing in a total of 9 markets- 3 low spend/3med spend/3 high spend. Thanks for your help.

The Media Guru Answers(Tuesday, October 10, 2000 ):
No such thing as "normal" here. At least three months, not more than a year. It also depends on what you're testing. If it's a scenario of ongoing weight for a non-seasonal consumer product, longer is better. If it's something that only sells during two onths of the year. . .

Monday, May 15, 2000 #3472
I have been presented the task of recommending media test markets for a cross-channel campaign that includes DM, print, radio, web and outdoor. Ideally, these test markets should be representative of the US population (i.e., mini US markets). What are the most commonly used media test markets that take the following into consideration? No spill in or out/purity of environment, large enough to purchase direct mail lists, and of course representative of the U.S. population?

The Media Guru Answers(Friday, May 19, 2000 ):
Nielsen publishes a test market guide addressing these issues. Note that "most common" is not really a good criterion. Why test in a market where lots of other tests are going on, thus making the market non-representative?

Realistically, being fully representative of the U.S. isn't possible unless you settle on a few demographic criteria that you deem relevant to your product or test. It isn't too hard to find markets approximately representative on age/sex/income parameters, but are these the most crucial parameters in testing a basic household product, or is it more relevant to be representative of African American and Hispanic penetration or household size?

Monday, November 29, 1999 #3006
Over the years I have seen various TV test market translation procedures such as Little US, As It Falls, and a P&G variant (if I remember correctly) called "Correct Increment". Where do test market translations stand in today's much faster reactive pace? what if anything is still utilized?

The Media Guru Answers(Wednesday, December 01, 1999 ):
As-It-Falls and Little U.S. are still in use. The Guru is not aware of how P&G may have revised "correct increment."

All of these however, are just ways to determine what weight should run in test markets to represent a given national theoretical plan.

Today's changes affect other elements of testing, like using cable systems as test laboratories rather than entire DMA markets, or reading scanner based results rather than full-scale survey research.

Wednesday, May 05, 1999 #2490
Can you suggest some test markets for a sports drink product skewed toward men 18-44?

The Media Guru Answers(Thursday, May 06, 1999 ):
There are test market evaluation resources from Nielsen and Standard Rate and Data Service's (SRDS)Lifestyle Market Analyst.

You will want to consider the strenght of the media you will test in the market you choose relative to national averages, lifestyle issues, economic issues and more.

Monday, February 15, 1999 #2335
Dear guru wanted to find out what is the role of BDI and CDI in market prioritisation. How do you arrive at BDI and CDI and is there a point of saturation on CDI

The Media Guru Answers(Monday, February 15, 1999 ):
BDI is Brand Development Index

CDI is Category Development Index. In either case the index is calculated by dividing the percentage of sales in a local market by the percentage of the population which is in that market. It is done based on a Brand's sales or the whole category's sales respectively. This index then reflects the per capita sales in the market and is used to indicate sales potential.

Some marketing philosophies allocate advertising dollars or advertising impressions delivery according to such an index.

Since the usage ia an index, "saturation" would not be a factor unless sales were bizarrely skewed geographically. For instance, a new product in test market might have 90% of sales in a market accounting ofr just 1% of the population. In such as case it would be ridiculous to use BDi to determine allocation.

The Guru has discussed this frequently. Click here to see past Guru responses on BDI and CDI

Thursday, July 16, 1998 #1955
Our agency has recently acquired a direct response account. We are wanting to test in two markets. The markets are Columbus, Ohio and Louisville, Ky. My question, are these considered good test markets? The product that we will be marketing is a Gun Safe. The price point is $199. If these are not good test market, what determines a good test market? Next question, what do you know about per inquiry? Is this something that I should consider for my Gun Safe client or am I better off running DR?

The Media Guru Answers(Thursday, July 16, 1998 ):
1) The usual considerations in choosing test markets include:
  • Population ; neither the very largest nor very smallest are usually appropriate. Often, top 10 or 20 and bottom 10 or 20 are eliminated
  • Demographic mix Is the proportion of your target -- age/gender/race/education/income/etc. -- typical of your overall geographic target area?
  • Media Are the available media representative of your eventual roll out media? If you plan to do national advertising in magazines, it is best (ideally) that the test market allows you to buy local editions of the same titles.

    Are the relative strengths of the media representative?

    Does cable compete with broadcast in a typical way? Is the newspaper coverage typical?

Should these factors be compared to national or a smaller eventual total target region? One might expect that a gun related product is more likely to experience success in certain parts of the country where multiple gun ownership is the norm and less likely in some other areas.

2) Per inquiry is a great approach for the underfunded advertiser. But, PI will generally cost up to 50% of revenue. "Per Inquiry" means you pay -- often 25-35% of product price -- for every inquiry, not just every order, that comes in. With ad funds available, the marketing costs ought to wotk out to be far lower per dollar of revenue.

Relatively few "good" media are available for PI. I.e. if the media can be sold for real money, it won't be sold on the speculative basis of PI.

Tuesday, May 20, 1997 #1350
How do marketers determine what cities they will conduct test marketing in? Peoria, Illinois used to be a popular test market....what made it so desirable and what criteria are important in determining test markets?

The Media Guru Answers(Tuesday, May 20, 1997 ):
There are several criteria that may be considered:

Is the test market representative of the U.S. or the potential marketing region?

This representativeness might be judged based on various demographic characteristics.

Or on distribution or having a representative set of competitors active in the market.

Or the availability of IRI or Nielsen scanner data or other research tools to read results.

Or the local availability of the national media under consideration.

Or purity of the media environment, i.e. minimal spill-in / spill-out of broadcast media, newspapers, etc.

Or size / media pricing which made testing inexpensive.

Peoria would have met several of these standards. Nielsen and others maintain guides for the specific purpose of comparing market characteristics in selection of test markets.

Monday, May 05, 1997 #1338
test marketing, specifically media weight tests.Using sales as the criteria--what % of these tests produce readable results; what, if any,are the minimum weight levels recommended for testing and any other insights you can offer.

The Media Guru Answers(Monday, May 05, 1997 ):
Different players have different rules-of-thumb. Since these tests are inherently proprietary, there will not be a large scale data base from which to generalize.

Large, testing-oriented companies, like P&G will have better informed "rules-of-thumb."

What per cent produce readable results is a somewhat vague question: "What percent produce positive results", or "What percent of tests are run for the full duration" are more practical questions. It is the Guru's understanding that, in either case, the answer is less than half.

Whole books exist to consider the variables which can blur the simple concept of weight test, such as mix, copy pool, number of stations or programs or magazine titles or continuity, which would likely change in execution of a greatly different weight.

What, after all, is the likelihood that more of the same advertising would not sell more than did a lesser quantity of advertising? In the Guru's experience, 1/3 has been the minimum considered testable, with 50% preferable. The Guru suggests the many articles on the subject published by the Advertising Research Foundation's Journal of Advertising Research.